Will the Indian Car Market Grow This Year?

Society of Indian Automobile Manufacturers (Siam) has recently predicted that the automobile industry will grow 12-13 percent over the remainder of this fiscal. Unfortunately, although the growth continues, nearly half of what the Indian automobile industry witnessed last year.

The main reasons for the slow growth

Car prices have increased. Car prices in India have increased four times in January-July 2010. steel and rubber have increased prices by forcing suppliers of auto components to pass the rising cost burden on the car, which in turn passes it through to the consumer. The cost makes a difference when it comes to sales numbers. The high base effect from last year will start kicking in. BS III emission norms will be implemented across India by October, which could additionally affect the price of the car. rising interest rates on auto loans.

Siam prediction says that around 17,14,925 units can be rolled out in the Indian car market during the financial year 2010-11. Total sales of passenger cars in India the figure is projected to reach 2,196,791 units in 2010-11 as against 1,949,248 units in 2009-10, which is 13 percent. If this figure is compared with sales last year, 15,26,259 units sold, a year before that (2008-09), 12,20,475 passenger cars sold in India. This translates into 25 percent growth.

There are certain elements that drive demand in every segment of the car at home and Siam made ​​a forecast for the first time only after taking into account all important data. However, Siam itself feels that the Indian auto industry is capable of beating forecasts and works much better. For now, a company car manufacturers considered that the second quarter will not do well as the first one that is very good. With high sales in the first quarter, broke sales records for many manufacturers.

Jan-June 2010 saw the launch of many super cars that are aggressively pricing. Figo Ford, Chevy Beat, New Maruti Suzuki WagonR, Volkswagen Polo and many other cars, including luxury cars were launched appealing to every class in society. the second half of the year, will see too many runs. However, whether the increase in sales as the first half of the year?

If last year's sales were taken into account, car sales picked up during the second half of the year. Compare that to this year's quarter from April to June and you will see that the total car sales increased by 33.43 per cent to 4,33,641 units compared to 3,24,985 units sold in April-June 2009.

Siam said that India's commercial vehicle sales may rise by 17 to 18 percent at 6,21,681 units this year from last financial year 531 395 units. However Siam considered two wheels, three wheels and four-wheel vehicles in India. Three-wheel segment will witness at least the growth and it certainly will affect the overall car sales numbers. So, it does not necessarily mean that sales of cars will be very bad.